Explain The Term Licensing Agreement

Get a lawyer who has expertise in licensing agreements. These agreements are complex and situation-specific. Many lawyers know how to build a general contract, but they cannot know the details of licensing agreements. An intellectual property lawyer could be a good place to start. A licensing agreement is a legal contract between two parties, the licensee and the licensee. In a typical licensing agreement, the donor grants the purchaser the right to manufacture and sell products, apply a brand name or trademark, or use the licensee`s patented technology. In return, the taker generally submits to a number of conditions relating to the use of the licensee`s property and undertakes to publicize the payments in the form of royalties. Each licensing agreement is unique and these agreements vary by type (copyright, trademark, patent, etc.). In general, you will find these sections in most licensing agreements: An example of a very common property contained in the licensing agreements is the image of a movie superhero. Toy manufacturers will often allow it to sell action characters that are much more likely to be purchased if they are based on a popular superhero.

Another common example is the licensing of a song for an advertising campaign or for use in a movie. In the fast food market, there are a number of franchise-based businesses, where a franchisee holds the rights to the name, products and promotional material of the main company. The licensing agreement should contain a language dealing with the issue of property disputes. What happens, for example, if someone challenges ownership of a trademark you have licensed? Or, what happens if someone plagiarizes the copyrighted work that is licensed? Both parties to the licensing agreement should agree on how to deal with these issues. Explain the monitoring and quality assurance process. There must be a first sample of the product that must be approved before the products can be created. Regular product quality checks should be carried out. Monitoring of product sales should be clearly defined. Who determines the price of the product? Can products be updated? The licensing agreement allowed Starbucks to promote brand awareness outside of its North American operations through Nestlé`s distribution networks. For Nestlé, the company has accessed Starbucks products and a strong brand image. The value of the brand can be positive or. Licensing agreements are often used for the commercialization of technologies.

Those who enter into a licensing agreement should consult a lawyer, as there are complexities that are difficult for those who do not have a deep understanding of intellectual property law.

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